Article #148 How to Zero Out or Completely Write Off a Cost Center / Warehouse?

Answer: When performing inventory counts, there are often situations when a cost center (aka warehouse) may need to be zeroed out or written off. These two actions, although similar in procedure, should not be confused with each other. Zeroing out a cost center often applies in a situation where a cost center, such as a delivery truck, may have nothing left on it, however according to the business system there are still quantities remaining. In this case, a Zero Quantity Count can quickly and completely Zero Out that cost center’s inventory value.

Once an inventory count has been performed, such as the aforementioned Zero Quantity Count, any changes in quantity levels will be sent to that cost center’s Adjustment Cost Center. An Adjustment Cost Center differs from other cost centers in that when looking at an Adjustment Cost Center in Solid Business Central at [Datafile / Cost Center / View], the ‘Num’, ‘Adj_To’, and ‘DamagedStk Adj_to’ fields are all the same number, meaning that this cost center adjusts inventory differences to itself. For this reason, if an inventory count is made for this cost center, then any differences from that count will be written off. For information on how to Partially Write Off an Adjustment Cost Center, please read Article #44 How can Damaged and Expired Inventory be Partially Written Off as Credits are Received.

How to Zero Out a Mobile Cost Center:

To Zero Out a Mobile Cost Center, use the handheld computer that’s assigned to it. If this handheld computer is not available, see the next section below for how to Zero Out any cost center.

On this Mobile Cost Center’s handheld computer, log into Solid Sales Pro as a supervisor, and once at the ‘Main Menu’, select [Stock Operations].

Next, choose [Inventory Count] followed by [Zero Quantity Count]. An Important Note will then display. Read the note carefully and if in agreement, use the [OK] button to continue. On the following ‘2305 Create Inventory Count’ screen, note that the ‘Counted By’ and ‘Counted For’ fields are automatically set to this mobile unit record’s number. Use [Save & Print] to continue.

A ‘Confirm’ warning will then show informing that this will create a Zero Quantity Count. If acceptable, select [OK] to continue. On the following ‘2315 Save Options’ screen, select [Full Inventory Count] to continue, and one last time a confirmation warning will display. NOTE: This is the last chance to cancel this Zero Quantity Count. By selecting [OK] to continue, the Zero Quantity Count will now be saved, and a report of the zero count can then be printed. Sync the handheld computer immediately to apply the count into Solid Route Accounting – Enterprise Edition.

How to Zero Out or Write Off any Cost Center:Following the steps below will either Zero Out or Write Off the cost center they’re performed for. What differentiates these two actions is that if these steps are performed for a Fixed or Mobile Cost Center, then it will Zero Out that cost center and transfer all inventory differences to its ‘Adj_To’ Adjustment Cost Center. If these steps are performed for an Adjustment Cost Center (a cost center that adjusts to itself), then the result will be an Inventory Write Off.

Begin by logging into Solid Sales Pro as a supervisor using any handheld computer. Then, from the ‘Main Menu’, select [Stock Operations], followed by [Inventory Count].

From the ‘2300 Inventory Count’ menu, choose [Create Inventory Count] to be taken to the ‘2305 Create Inventory Count’ screen. Change the ‘Counted For’ field to whichever cost center number this Zero Quantity Count or Write Off is being created for.

Use the [Count Inventory] button to be taken to the ‘2310 Count Inventory’ screen, and use the [Add] button to add any inventory item to this inventory count. It literally doesn’t matter which inventory item is added since the entire cost center will have zero quantity at the end of these steps anyhow. Once an item has been selected with the [OK] button, on the ‘2311 Inventory Details’ screen, set the ‘Present Count’ field to 0 (zero), and accept this with the [OK] button to return to the ‘2310 Count Inventory’ screen. Use [OK] once again to return to the ‘2305 Create Inventory Count’ screen.

Now select the [Save & Print] button to be able to save this as a [Delayed Inventory Count]. A confirmation will then show asking to proceed. NOTE: This is the last chance to cancel this inventory count. By selecting [OK] this will now be saved to the handheld computer’s memory as a Delayed Inventory Count. The count can then be printed, although it will only have the one item at zero quantity on it. Once saved, sync this Delayed Inventory Count back into Solid Route Accounting – Enterprise Edition.

Once the sync is completed successfully, navigate in Solid Business Central to [Datafile / Cost Center / View] and display the cost center that this Delayed Inventory Count was created for.

While displayed, use [F6 – Finalize] to bring up the ‘Open Counts’ screen where inventory counts can be reviewed and adjusted if needed. Since no adjustment is needed for a Zero Out or Write Off, use [CTRL+END] to save this count and return to the ‘Cost Center Activity Window’ once again, but the menu at the bottom has now changed to be the ‘Options to Save Changes’ menu.

To continue with this Zero Out or Write Off, select [F4 – Save to Count Sheets & Finalise to Inventory] to then be given the choice to save this as a Partial Count or a Full Count. Select [F5 – Save as Full Count] to continue.

If Zeroing Out this cost center, any inventory level differences needs to be transferred to the Adjustment Cost Center specified in its ‘Adj_To’ field. As such, a Stock Transfer must be created to bring those quantities to that Adjustment Cost Center and so answer ‘Y’ to the prompt, “This will create a Stock Transfer! Ok to Proceed?”

If Writing Off this Adjustment Cost Center, then answer ‘Y’ to the prompt, “This will create a Write off via Product Receipt! Ok to proceed?”

The ‘Finalized Delayed Inventory Cost Report’ can then be printed if desired, and this cost center’s ‘Inventory Value’ should now be at $0.00.

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